Helicopter Market Size, Share & Russia-Ukraine War Impact Analysis, By Type (Civil & Commercial and Military), By Number of Engines (Single Engine and Twin Engine), By Maximum Take-off Weight (MTOW) (Less than 3,000 Kg, 3,000 Kg to 9,000 Kg, and Greater than 9,000 Kg), By Application (Emergency Medical Service, Corporate Service, Search and Rescue Operation, Oil & Gas, Defense, Homeland Security, and Others), By Point of Sale (New and Pre-Owned), and Regional Forecast, 2024-2032

The helicopter market size was valued at USD 67.46 billion in 2023 and is projected to grow from USD 74.52 billion in 2024 to USD 97.13 billion by 2032, exhibiting a CAGR of 3.4% during the forecast period. North America dominated the helicopter market with a market share of 55.34% in 2023. Moreover, the helicopter market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 45.26 billion by 2032, driven by an increasing military and civil helicopter deliveries in the country.

A helicopter is a type of Vertical Take-Off and Landing (VTOL) aircraft that uses one or more horizontal rotors to generate lift and propulsion, allowing it to take off, hover, and fly in any direction, including forward, backward, and sideways. They are of different types, such as civil, commercial, and military. In a helicopter, the main rotor provides lift to the aircraft while the tail rotor counteracts the torque produced by the main rotor, allowing it to maintain stability and control. The main rotor's blades are shaped like airfoils and positioned to generate lift when they spin. The increasing demand from the defense and commercial segments is expected to drive the growth of the global market size from 2024 to 2032.

Helicopters have a wide range of applications, including air ambulance services, search & rescue operations, military missions, oil & gas operations, and business travel. They are also used for aerial surveys, aerial photography, and cargo transportation. Their versatility makes them ideal for operations in difficult-to-reach areas, such as remote locations and disaster zones.

Russia-Ukraine War Impact

Russia-Ukraine War Fueled Market Growth Owing to Increased Demand for Combat Helicopters

Amid its full-scale invasion of Ukraine, Russia is actively enhancing its weapon production capabilities by establishing new factories. These facilities, spanning warplanes, combat helicopters, military drones, and guided munitions, include a mix of state-operated military plants, public-private partnerships, and dual-use enterprises. These entities engage in both military and civilian operations, focusing on manufacturing and repairing equipment and ammunition.

Upon analyzing the satellite images from Planet Labs, Airbus, and Maxar Technologies, Schemes identified several newly constructed structures, such as hangars and manufacturing plants. These facilities have experienced rapid expansion or have been newly put together since Russia's invasion of Ukraine in February 2022. In September 2023, the Russian government unveiled its draft budget for 2024, signifying a historic milestone as the country is poised to allocate 6% of its Gross Domestic Product (GDP) to military expenditures. This marks the first instance in modern history where defense spending surpasses allocations for social spending.

Additionally, while certain NATO nations are contemplating the design of a new military helicopter, Original Equipment Manufacturers (OEMs) are closely analyzing Russia's conflict in Ukraine to glean insights into the features and tactics that could provide a competitive advantage to their designs. Moreover, many countries are financing the war by supplying the required combat equipment. For instance, in March 2023, the U.S. offered Slovakia helicopters in exchange for delivering jets to Ukraine. As part of this arrangement, the U.S. is offering Slovakia 12 new military helicopters as compensation for the MiG-29 fighter jets that the European country plans to transfer to Ukraine.

Helicopter Market Trends

Autonomous Technology, eVTOL Aircraft, and Urban Air Mobility (UAM) Are Prominent Market Trends

Technological advancements and new product developments are the key trends gaining popularity in the market. Major players in this market are focusing on developing more technologically advanced aircraft to increase their market share. This innovation involves the utilization of advanced automation systems and Artificial Intelligence (AI) to enable helicopters to operate with varying degrees of autonomy. These autonomous helicopters are designed to perform a range of tasks, from surveillance and reconnaissance missions to cargo transport and even passenger transport services.

For instance, in December 2023, Rotor Technologies revealed its latest innovation, the R550X autonomous helicopter, scheduled for market introduction in 2024. Derived from the Robinson R44 Raven II, the R550X stands as the world's largest uncrewed civilian helicopter. The aircraft is specifically crafted for safety-critical cargo, utility, and maritime operations, with requirements exceeding the payload capacity and range of conventional drones or eVTOLs. This heavy-lift utility helicopter boasts an impressive payload support of up to 1,200 pounds (550 kilograms), which is more than twice the effective payload of the Robinson R44.

With a flight range extending to approximately 350 nautical miles (650 kilometers) and a cruise speed of 109 knots (202 kph), the R550X offers enhanced capabilities for diverse operational scenarios. The rotor has already garnered letters of intent from agricultural customers expressing interest in utilizing the R550X for crop spraying. The company has initiated the production of the first two helicopters at its facilities in New Hampshire. Furthermore, eVTOL, Urban Air Mobility (UAM), government initiatives & projects to develop & modernize rotorcrafts, strategic partnerships, and collaborations are also vital market trends.

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Helicopter Market Growth Factors

Surge in Demand for Air Ambulance Services Will Catalyze Growth of the Market

An air ambulance refers to an aircraft that transports sick or injured people to the hospital during an emergency. Air ambulance services are becoming more prevalent globally due to advancements in medical technology, and have gained popularity as they provide quick and efficient transportation for critically ill patients. Their ability to reach remote and inaccessible areas makes them an ideal option for transporting patients to medical facilities with speed and efficiency. The need for rapid transportation of critical patients to hospitals has driven the growth of the air ambulance services as helicopters provide the fastest means of transport.

For instance, in October 2022, at the annual Air Medical Transport Conference, Airbus Helicopters revealed that it had recorded a robust sales momentum in the U.S. medical market. The Original Equipment Manufacturer (OEM) reported the sale of over 35 new single- and twin-engine Airbus helicopters in the U.S. air medical sector within the last 12 months.

Additionally, governments, healthcare organizations, and private entities are investing significantly in expanding and modernizing air ambulance fleets to meet the growing demand. This surge in growing demand of helicopters for medical applications extends beyond traditional emergency responses as air ambulances increasingly facilitate inter-facility transfers, ensuring that patients receive the specialized care they require at the earliest possible stage of their medical journey.

Increasing Demand of Next-Generation Rotorcrafts from Defense Sector to Drive Market Growth

Next-generation rotorcrafts are often equipped with state-of-the-art communication systems, advanced sensors, and improved maneuverability, enhancing their capabilities for intelligence gathering and mission execution. Additionally, the increasing concerns regarding border security, counter-terrorism efforts, and disaster response have contributed to the growing demand for rotorcraft within the defense sector. Moreover, governments and defense agencies globally are investing substantially in the procurement and modernization of their rotorcraft fleets to maintain a competitive edge and meet the evolving demands of contemporary military operations.

For instance, in December 2023, Airbus Helicopters announced that it had signed a contract worth approximately USD 2.3 billion with The German Bundeswehr. The procurement agreement covers a maximum of 82 multi-role H145M helicopters, consisting of 62 confirmed orders and an additional 20 optional units. This stands as the most extensive order ever made for the H145M, and as a result, it represents the largest procurement for the HForce weapon management system. The contractual terms also include seven years of comprehensive support and services, guaranteeing an optimal commencement of operational service. Specifically, the German Army is set to receive 57 helicopters, while the Luftwaffe's special forces will be allocated five units.

RESTRAINING FACTORS

Safety Concerns, Delivery Backlogs, and High Operational & Maintenance Costs to Hamper Market Growth

Safety concerns are exerting a restraining influence on the helicopter market growth. These concerns revolve around ensuring the wellbeing of passengers, crew members, and the secure operation of rotorcrafts in various environments. For instance, in December 2023, the U.S. Naval Air Systems Command (NAVAIR) issued a grounding bulletin to temporarily suspend the operations of its entire V-22 Osprey helicopter fleet, following a report about a crash off the coast of Japan, which resulted in the death of eight crewmembers due to a malfunction.

Additionally, high operational and maintenance costs will also hamper the market. Rotorcrafts are complex machines requiring a significant amount of upkeep to ensure that they operate safely and efficiently. The maintenance cost can be exceptionally high for older models as replacement parts become more difficult to source and are expensive. Furthermore, surge in demand, coupled with the complexity of manufacturing these specialized aircraft, has resulted in a backlog of orders awaiting fulfillment.

Helicopter Market Segmentation Analysis

By Type Analysis

Civil & Commercial Helicopters Dominated Market Owing to Increased Demand for Emergency Services

By type, the market is segmented into civil & commercial, and military.

The civil & commercial helicopters segment dominated the market in the base year due to the rising demand for emergency services and increased need for air transportation. As the population grows and urban areas expand, the demand for efficient and fast transportation increases.

The military segment is predicted to witness significant growth during the forecast period. The growth of this segment is attributed to the rising replacement and modernization of aging fleets and increasing use of these helicopters in disaster relief and humanitarian missions. Additionally, the rising geo-political tensions and war situations are expected to further catalyze the segment’s growth.

By Number of Engines Analysis

Twin-Engine Helicopters Dominated Market Owing to Increased Demand for Long Range Aircraft for SAR Missions

By number of engines, the market is segmented into single engine and twin engine.

The twin engine segment dominated the helicopter market share and is estimated to be the fastest growing segment during the forecast period due to the increasing demand for long range rotor-wing aircrafts. Twin-engine helicopters offer enhanced safety and performance capabilities, especially in demanding missions or challenging environments. This configuration is often chosen for medium to heavy-lift operations, corporate transport, and Search and Rescue (SAR) missions.

The single-engine segment is predicted to witness moderate growth during the forecast period. The growth of this segment is credited to the rising demand for trainer aircrafts. Single-engine helicopters are known for their simplicity, cost-effectiveness, and ease of maintenance, thereby boosting their demand.

By Maximum Take-off Weight (MTOW) Analysis

Helicopters With Less than 3,000 Kg MTOW Led Market Owing to Increasing Need for On-Demand Rotorcraft Services

By maximum take-off weight, the market is segmented into less than 3,000 kg, 3,000 kg to 9,000 kg, and greater than 9,000 kg.

The less than 3,000 kg segment dominated the market in 2023. The less than 3,000 kg segment dominates the market and is estimated to be the fastest growing segment owing to the rising demand for on-demand rotorcraft services. Helicopters in this category are typically lightweight and find applications in roles, such as personal transportation, light utility, and some types of aerial work.

The 3,000 kg to 9,000 kg segment is expected to grow significantly during the forecast period due to the increased demand for versatile rotary-wing aircraft from various end-user industries. Rotorcrafts, with a maximum takeoff weight ranging from 3,000 kg to 9,000 kg, often serve in versatile roles, such as executive transport, medium utility, and law enforcement.

By Application Analysis

Defense Applications Dominated Market Owing to Increased Government Investments in Rotorcrafts With Advanced Military Capabilities

Based on application, the market is categorized into Emergency Medical Service (EMS), corporate service, search & rescue operations, oil & gas, defense, homeland security, and others.

The defense segment dominated the market and is expected to grow significantly during the forecast period owing to rising government initiatives to modernize aircraft and need for rotorcrafts with advanced capabilities. The defense sector uses helicopters for military purposes. Military helicopters are designed and equipped to perform a range of functions, including troop transport, reconnaissance, search & rescue, attack missions, and logistical support.

The Emergency Medical Services (EMS) segment is anticipated to be the fastest growing segment during the forecast period due to the rising adoption of Helicopter Emergency Medical Services (HEMS). Emergency Medical Services (EMS) refer to the utilization of helicopters to provide rapid and specialized medical assistance in emergencies.

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By Point of Sale Analysis

Pre-Owned Aircraft Market is Anticipated to Grow at Faster Rate Owing to Cost-Effectiveness and Increasing Backlogs by OEMs

By point of sale, the market is divided into new and pre-owned.

The pre-owned segment recorded a higher growth rate during the base year due to the cost-effectiveness of pre-owned aircraft and increased backlog deliveries by OEMs. The rising usage of reusable helicopter parts and aftermarket is anticipated to boost the market. The pre-owned aircraft market is expected to lead in Europe and Asia Pacific regions.

The new segment will witness significant growth during the forecast period owing to the increasing demand for air travel as rotary-wing aircrafts provide an efficient and flexible mode of transportation. Moreover, rising disposable income and increasing business & leisure travel, particularly for short-to-medium distance journeys, will further fuel the segment’s growth.

REGIONAL INSIGHTS

In terms of geography, the market is divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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North America dominated the market and was valued at USD 37.33 billion in 2023. This region's growth is due to increasing military programs for advanced rotor-wing aircrafts. The rising procurement of helicopters for research and rescue, surveillance and security operations is expected to propel the growth of the market. The presence of major companies and rising U.S. defense budget is expected to boost the market growth.

In December 2022, Bell, a division of Textron, won the U.S. Army's competition to manufacture the Future Long-Range Assault Aircraft (FLRAA). This was the military's most significant helicopter procurement decision in four decades. Valued at up to USD 1.3 billion, this contract aims to replace approximately 2,000 Black Hawk utility helicopters. Although the FLRAA will not directly substitute the existing aircraft on a one-to-one basis, it is slated to assume the responsibilities of the Black Hawk in 2030, serving as the primary asset for transporting troops to and from the battlefield.

The market in Europe held the second-largest share in the base year. The regional market’s high growth is attributed to aging fleet, increasing number of helicopter manufacturers, and introduction of modernization programs. For instance, in September 2023, Lockheed Martin expressed its commitment to partake in the U.K. Ministry of Defense's (MOD) New Medium Helicopter (NMH) requirement. The company has delineated its consortium of U.K. partners and highlighted the advantages of selecting the state-of-the-art Sikorsky Black Hawk helicopter as the preferred choice for replacing the U.K.'s aging mixed medium helicopter fleet.

Asia Pacific is the fastest-growing region in the market. This growth is attributed to the growing defense spending by emerging countries and rising political tensions. For instance, in September 2022, the Indian Air Force announced that it was going to place orders for 156 more Prachand indigenous Light Combat Helicopters, from Hindustan Aeronautics Limited (HAL), a Defense Public Sector Undertaking. The IAF and the Indian Army would deploy the aircraft at both the China and Pakistan fronts.

Latin America is anticipated to witness significant growth in the market during the forecast period due to increasing VIP transport and introduction of urban air mobility. For instance, in June 2022, global airline and airport leaders entered a partnership to explore the infrastructural needs to bring eVTOL passenger flights to Brazil this decade. The partnership includes Avolon, the world's second-largest aircraft leasing company, Corporación América Airport, the world's largest private airport operator by number of airports, GOL, Brazil's largest airline (Grupo Comporte, Brazil's leading transport operator), and Vertical Aerospace, an aerospace & technology company that develops and manufactures eVTOL aircraft.

The market in the Middle East will witness significant growth in the future. The rising demand for helicopters for business and charter services will fuel the regional market’s growth. Additionally, increasing offshore oil & gas exploration and rising demand for military rotor-wing aircrafts are expected to fuel the regional market’s growth.

KEY INDUSTRY PLAYERS

Market Leaders to Focus On Sustainable Operations, Advanced Avionics, and Improved Engines for Safety & Performance

The helicopter market is highly consolidated with a few key players, such as Airbus S.A.S., Textron Inc., Leonardo S.p.A., Lockheed Martin Corporation, The Boeing Company, and others. These companies account for most of the market share and are focusing on investing in research and development programs for developing sustainable operations, advanced avionics, lightweight materials, and improved engines to produce more efficient and reliable helicopters. For instance, in September 2023, Airbus Helicopters introduced PioneerLab, a twin-engine technology demonstrator built upon the H145 platform. Serving as a valuable addition to Airbus' portfolio of FlightLabs, PioneerLab is dedicated to evaluating technologies aimed at lowering helicopter emissions, enhancing autonomy, and incorporating bio-based materials.

LIST OF TOP HELICOPTER COMPANIES:

• Airbus S.A.S (Netherlands)


• Textron Inc. (U.S.)


• Leonardo S.p.A. (Italy)


• Lockheed Martin Corporation (U.S.)


• The Boeing Company (U.S.)


• Rostec (Russia)


• Hindustan Aeronautics Limited. (India)


• Kaman Corporation (U.S.)


• The Robinson Helicopter Company (U.S.)


• Enstrom Helicopter Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 - Hill Helicopters, a startup in the U.K. specializing in rotorcraft, revealed the initial prototypes of its HX50 single-engine light helicopter. The first two completed aircraft showcase variations, with one featuring skid landing gear and the other equipped with wheeled landing gear.


• August 2023 - The U.S. State Department gave its approval to a request from the Polish government to acquire 96 Boeing AH-64E Apache helicopters, along with related equipment, at an estimated cost of USD 12 billion. If the order is fulfilled, Poland would become the largest operator of the AH-64E outside of the U.S.


• August 2023 - Airbus Helicopters and Korea Aerospace Industries (KAI) entered an agreement to commence the serial production stage of Light Armed Helicopters (LAH). This collaborative agreement signifies a transition to the next phase of the program, involving an increased production of the LAH at KAI's facility in Sacheon, South Korea.


• June 2023 - Safran Helicopter Engines and MTU Aero Engines entered a Memorandum of Understanding (MoU) to establish a 50/50 joint venture dedicated to developing an engine for the European Next Generation Rotorcraft Technologies (ENGRT) project. Funded by the European Defense Fund, ENGRT is a research and technology initiative aimed at laying the groundwork for the upcoming generation of military rotorcraft in Europe.


• March 2023 - Leonardo revealed that it had entered an agreement with Abu Dhabi Aviation (ADA) to acquire six AW139 intermediate twin-engine helicopters. The anticipated delivery for these aircraft is within the 2024-2026 timeframe. The helicopters are slated for deployment in offshore transport missions, effectively augmenting ADA's AW139 fleet, with a primary focus on providing support to the energy industry.

REPORT COVERAGE

An Infographic Representation of Helicopter Market

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The report provides a detailed analysis of the market. It comprises all major aspects, such as R&D capabilities and optimization of the manufacturing process. Moreover, it offers insights into the market trends and highlights key industry developments, along with latest market forecast. In addition to the above-mentioned factors, the report focuses on several factors that have contributed to the market’s growth in recent years.

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